Stamp Duty on Llp Agreement Maharashtra

Stamp Duty on LLP Agreement in Maharashtra: A Comprehensive Guide

The Limited Liability Partnership (LLP) Act, 2008 brought in a new business entity that has gained immense popularity among entrepreneurs. LLPs are governed by the Ministry of Corporate Affairs and are considered a combination of a partnership firm and a private limited company. LLPs are simple to incorporate and have limited liability, making them an attractive option for small and medium-sized enterprises.

When an LLP is formed, it is essential to draft an agreement that outlines the rights and responsibilities of each partner. This agreement is known as the LLP agreement, and it acts as a legal document that governs the functioning of the partnership. The LLP agreement is also used for the purpose of stamp duty.

What is Stamp Duty?

Stamp duty is a tax levied by the government on various legal documents like deeds, agreements, and contracts. The purpose of stamp duty is to validate the legal document and make it legally enforceable. In the case of LLP agreements, stamp duty is levied to make the agreement legally valid.

Stamp Duty on LLP Agreement in Maharashtra

In Maharashtra, LLP agreements are governed by the Maharashtra Stamp Act, 1958. According to the act, LLP agreements are subject to a stamp duty that varies depending on the capital contribution made by the partners. The stamp duty on LLP agreement in Maharashtra is calculated as follows:

– For every Rs. 1000 of capital contribution up to Rs. 1 lakh – Rs. 200

– For every Rs. 1000 of capital contribution between Rs. 1 lakh and Rs. 5 lakhs – Rs. 150

– For every Rs. 1000 of capital contribution above Rs. 5 lakhs – Rs. 100

For example, if the total capital contribution of the LLP is Rs. 10 lakhs, the stamp duty on the LLP agreement will be calculated as:

– Rs. 200 for the first Rs. 1 lakh of capital contribution

– Rs. 150 for the next Rs. 4 lakhs of capital contribution

– Rs. 100 for the remaining Rs. 5 lakhs of capital contribution

Therefore, the total stamp duty on the LLP agreement will be Rs. 8500.

Stamp Duty Payment and Procedure

Stamp duty on LLP agreement in Maharashtra must be paid to the Maharashtra Government within 30 days of the date of execution of the LLP agreement. The payment can be made online through the Maharashtra e-stamp portal. Once the payment is made, the e-stamp certificate will be generated, and it will act as proof of payment of stamp duty.

Conclusion

Stamp duty on LLP agreement in Maharashtra is an essential aspect to be considered while incorporating an LLP. It is a one-time payment that must be made within 30 days of the date of execution of the LLP agreement. The stamp duty varies depending on the capital contribution made by the partners. It is advisable to seek the help of a professional to calculate and pay the stamp duty on the LLP agreement to avoid any legal complications in the future.

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